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Homeowners upgrading their homes, but failing to update their insurance

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13/08/2012
Brits are increasingly choosing to upgrade their homes rather than move to a new place, but are still failing to update their home insurance.

According to MoneySupermarket, people often fail to inform their insurance provider when they have made structural improvements to their home, such as adding an extension or a conservatory, or converting a loft.

The research revealed a quarter of Brits would not update their insurer, with 21% saying they didn’t think it was necessary. 3% couldn’t be bothered and 2% would avoid it because it could increase the cost of their premium.

However, according to the comparison website, structural improvements to your home may not have a financial impact on your home insurance premium as many insurers only increase premiums once the value of your property increases significantly, typically £10,000 or more.

Despite this, failing to notify your insurer of structural changes to a property could void the policy, so if you are undertaking work, it is important to let them know.

Hannah Mercedes-Skenfield, insurance spokesperson at MoneySupermarket, said: “There is no doubt we are a nation that loves DIY and home improvement.

“We take pride in our homes and like to make the most of all available space. It will come as no surprise that every year, 200,000 of us carry out a loft conversion or the like to our homes.

“I urge all those people carrying out home improvement work, whether it is a luxurious loft conversion or comfortable conservatory, to inform their home insurance provider as soon as the works are complete and the room is being used.

“Work being carried out on a property would be covered by your builder’s insurance so it’s vital to check they have all the correct policies place.”

Mercedes-Skenfield also advises that you need to upgrade both the buildings and contents insurance if necessary, after the work on your home is complete.

Those concerned about cost, especially after forking out for those home improvements, should shop around for the best deal on home insurance cover; on average Brits can save £119 a year on a combined buildings and contents insurance policy.

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